MICROCRYSTALLINE WAX

CONTENTS

SECTION I PRODUCT CHARACTERISTICS AND SPECIFICATION

SECTION II PRODUCT APPLICATIONS

SECTION III INDIAN MANUFACTURERS

SECTION IV IMPORT/EXPORT TRENDS

SECTION V PRICE DETAILS

SECTION VI INDIAN DEMAND

SECTION VII BROAD OUTLINE OF MANUFACTURING PROCESS

SECTION VIII RAW MATERIAL REQUIREMENTS, UTILITY

AND AVAILABILITY

SECTION IX GLOBAL SCENARIO

SECTION X DISCUSSIONS ON ECONOMIC CAPACITY,

PROJECT COST AND PROFITABILITY PROJECTIONS

SECTION XI SWOT ANALYSIS

SECTION XII FACTORS INFLUENCING THE POSITION FOR

A NEW INDUSTRY AND RECOMMENDATIONS

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 SECTION I

PRODUCT CHARACTERISTICS AND SPECIFICATIONS

Molecular weight Microstyalline wax is a mixture of

hydrocarbons of 35 to 50 carbons and 500
to 700 molecular weight
Characteristics, compared to Paraffin Wax Crystals are smaller, as its name implies
Melting point is higher
Higher viscosity in the molten state than
Paraffin wax
Softer, although its melting point is high
Good adhesiveness
Oil retaining tendency

Colour Varies from colourless to yellow

Form Oily and amorphous mass whose
consistency varies with temp.
Acidity No red colour to 0.1 ml of methyl orange
indicator.
Alkalinity No pink colour to one drop of
phenophthalein
Solubility Insoluble in water. Soluble in chloroform,
ether, carbon disulphide, benzene and oils
Specific gravity 0.815 to 0.880
Melting point 38 to 60 deg.C

Grades

For technical purpose, two grades of Microcrystalline waxes are known:

1. The low melting flexible type with adhesive properties.

2. High melting hard and brittle type.

The flexible type, which is generally called residual Microcrystalline wax, is by far, the
most commonly utilised.

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Product Specifications

Specification of Microcrystalline wax produced by Nippon Seiro Co Ltd., Japan

Item Grade Himic 1080

Melting point (ASTMD 127) 83.9 deg.C (183) deg.F

Penetration @ 25 deg C 13
(ASTMD-1321) 21
Viscosity cst @ 100 deg.C (ASTMD-445) 15.1
Colour (ASTMD-1500) L 0.5
Flash point (ASTMD 92) 310
Volume resistivity, cm at 100 deg.C 6 x 1014

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 SECTION II

PRODUCT APPLICATIONS

Indian usage trends

Flexible type: The major demand in the country is for the flexible type of
Microcrystalline Waxes, which are widely used for lamination, packaging, cosmetics,
petroleum jelly, sealing compound and rust preventives etc.

Hard type: Hard Microcrystalline waxes are mostly used for carbon paper, printing inks,
polishes and paper coating.

High melting type: The high melting Microcrystalline Waxes, prepared from tank
bottoms, can be substituted for imported Ozokerite and Carnauba wax to fill the long
standing need for a low cost, hard, inert and high melting waxes.

Specially oxidised high melting Microcrystalline Waxes are extensively used as

emulsifiable waxes by polish manufacturers, as a replacement or as extender for imported
Carnauba and other Vegetable waxes.

In applications where glossiness and hardening are the main objects, tank bottom waxes
are the best.

Sector of applications

* Wire and cable

* Insulation of electrical equipments
* Lubricant
* Metal casting
* Rust preventives
* Rubber anti oxidants
* Paper coating
* Textile water proofing
* Heating processing
* Printing inks
* Cosmetics
* Phonograph records

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 SECTION III

INDIAN MANUFACTURERS

The Indian suppliers include the following

* Eastern Petroleum Pvt.Ltd.,

235-239, Jawahar Ind. Estate,
Kamothe, Panvel, Dist. Raigad
Maharashtra-410 209

* Haryana Petrochemicals Ltd.,

55-59, HUDA Indl. Area,
Delhi-Rewari Road,
Rewari-123 401

* Indian Oil Corporation Ltd.

(Refinery Division)
Haldia Refinery,
P.O. Haldia Oil Refinery-721 606

* Golechha Chemicals Wax Division

10, Himalaya Complex,
Supela, Bhilai-490 023

* Savita Chemicals Limited

17/17A, Thane-Belapur Road,
P.O. Turbhe, Thane-400 613

* Subray Catal Chem Pvt. Ltd.,

G-42, `D' Wing, Dewan Apts,
No.2, Vasai Road (E), Dist. Thane-401 202.

* Sitaco Pharma Chem. Pvt. Ltd.,

Behind Dist. Court, Mill Para,
Durg (M.P.)

* Shri Tirupati Chemicals

190, Arya Nagar,
Durg, Madhya Pradesh

* Unicorn Petroleum Industries Pvt.Ltd.,

10, Vaibhav Industrial Estate,
Deonar, Sion Trombay Road,
Mumbai-400 088.
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 SECTION IV

IMPORT/EXPORT TRENDS

4.1. Present import level : Around 5000 tonnes per annum

Individual Imports of Microcrystalline Wax

Period 2002

Name of the Importers Quantity in Value in Rs. Country Date Port

tonnes
MRF Ltd. 1.000 43372 Spain 01.01.2002 to Chennai
10.01.2002
MRF Ltd. 5.625 243209 Belgium 01.02.2002 to Mumbai
11.02.2002
BC Components India 1.002 147619 U.S. 24.03.2002 to Mumbai
31.03.2002
Organic Coatings Ltd. 0.800 110631 U.S. 01.04.2002 to Mumbai
05.04.2002
Apollo Tyres Ltd. 22.897 903835 China 01.05.2002 to Mumbai
07.05.2002
Apollo Tyres Ltd. 23.750 938473 China 11.06.2002 to Mumbai
17.06.2002
Apollo Tyres Ltd. 23.750 937518 China 17.07.2002 to Mumbai
27.07.2002
Apollo Tyres Ltd. 23.750 937518 China 08.08.2002 to Mumbai
14.08.2002
Unicom Petroleum Inds. 5.400 338653 Holland 17.09.2002 to Mumbai
24.09.2002

4.2. Exports Negligible

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 SECTION V

PRICE TRENDS

Basic Price Rs.58 per kg

Taxes and Duties Extra as applicable

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 SECTION VI

INDIAN DEMAND

Present Indian Demand Around 15,000 tonnes per annum

Growth rate in demand 7 to 8% per annum

Sectorwise demand pattern

Sectorwise Pattern of demand

In percentage
Tyre sector 16%
Cosmetic 14%
Pharmaceutical sector 5%
Printing ink/coatings 3%
Rubber and non tyre sector 6%
White petroleum jelly 14%
Lubricant 9%
Adhesives/Lamination 21%
Candle 10%
Miscellaneous including electronics 2%

Indian requirements are partly met by imports.

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 SECTION VII

BROAD OUTLINE OF MANUFACTURING PROCESS

Melting

The black wax (slack wax) from heavy distillate is poured in a jacketed reactor made of
Mild Steel, when the wax is subjected to melting.

Steam is passed through the jacket of a jacketed reactor to maintain the temp. well above
the filtering temperature.

Filtering

The heated wax in liquid state is filtered to remove all particle materials, which can be
discarded.

Clay treatment

The filtered slack wax is again poured into a jacketed vessel fitted with the agitator for
heating as well as clay treatment.

Here the product is decolourised with activated clay and a small amount of lime. An
intensive treatment leads to a white product. Any colour change from the original dark
brown to white can be obtained depending upon the extent of treatment for
decolourisation.

Refiltering

The clay treated wax is now passed through a filter where all the impurities in the form of
cake are thrown off and filtered material is collected.

Dissolving in hot solvent

The filtrate is taken back to the jacketed vessel where it is mixed with the solvent.
Sufficient steam is passed to maintain the temperature.

Chilling

The content is subjected to cooling and crystallisation to precipitate the product as

microcrystalline wax.
Filtration

After the precipitation of wax, complete material is filtered and wax is separated and put
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into the trays for chilling. The filtrate is taken for reprocessing.

Evaporation

The filtrate from the above process is now evaporated and the solvent Methyl Ethyl
Ketone is recovered which is pumped to the storage tank for its reuse.

Source of technology

* Indian Institute of Petroleum

Dehradun

Major plant & machinery and suppliers

Main storage tank The Anup Engineering Ltd.,

P.B. No.1158,
Ahmedabad-380 002

Aristo Engineers
J-3, Vikas Udyog Nagar,
Behind Kasturi Tiwer
Phatak-Goddeo Road,
Bhayander (E), Thane-401 105

Abhinav Polymers
A/2, 3909, GIDC Estate,
Phase - IV, Vatva
Ahmedabad-382 445
Gujarat

Reactor Chemitherm Plants & Systems P. Ltd.,

30, Anandha Street
Alwarpet, Chennai-600 018

Texel Fabricators Pvt. Ltd.,

335, Sidco Industrial Estate,
Ambattur, Chennai-600 098, Tamil Nadu

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Filters Air Filter Industries
Mercantile Building
2nd Floor, G.P.O. Box 886
9A, Lal Bazar Street
Calcutta-700 001

Divya International
23A, Netaji Subhas Road,
8th Floor, Room No.28,
Calcutta-700 001

Compressor ELGI Equipments Ltd.,

Elgi Industrial Complex III,
Trichy Road,
Singanallur, Coimbatore-641 005

K.G. Khosla Compressors Ltd.,

19.8 KMS, Delhi-Mathura Road,
Faridabad-121 003, Haryana

Thermic fluid heater Aero Therm Systems Pvt. Ltd.,

Plot No,1517, Phase – III
GIDC, Vatwa, Ahmedabad – 382 445

Energy Machine
C1, B/423, GIDC, IV- Phase, Vithal
Udyognagar, Dist.Anand, Gujarat

Chilling plant Voltas, Chennai

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12
 SECTION VIII

RAW MATERIAL REQUIREMENTS AND AVAILABILITY

Basis : One tonne of Microcrystalline wax.

Raw material

Slack wax 0.70 tonne

Polyethylene wax (Low density) 0.20 tonne
Low density Polyethylene 0.095 tonne
Stabiliser 0.005 tonne

Utility

Fuel 240 litres

Water 10,000 litres

Raw material availability

Slack wax Chennai Petroleum Corpn., Chennai

Haldia Refineries, West Bengal
Indian Oil Corporation

HDPE/LDPE Reliance Industries Limited/

Indian Petrochemicals Corporation Ltd. (IPCL)
Haldia Petrochemicals, West Bengal
Gas Authority of India Ltd., U.P.

Activated earth Bleachaid Minerals

Ashapura Volclay Ltd.

Polyethylene wax To be imported

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 SECTION IX

GLOBAL SCENARIO

Global manufacturers

* Akrochem Corpn.
255 Fountain Road, Akron,
H 44304-1991

AlliedSignal Inc., Specialty wax & Additives

1425, Oakbrook Drive,
Suite 600, Norcross,
GA 30093.

* The British Wax Fefining Co. Ltd.,

29 St. John's Road,
Redhill surrey, RH1 6DT

* Moore & Munger Marketing, Inc.

Two Corporate Drive
Suite 550, Shelton,Connecticut 06484

* The International Group, Inc (IGI),

P.O. Box 384, Old Eagle School Road,
Wayne, PA 19087.

* International Wax Refining Co. Inc.

P.O. Box 4085, 22, Halladay St., Jersey City, NJ 07304,USA

* Michelman, Inc.,
9080, Shell Road, Cincinnati, OH 45236-1299,USA.

* Shamrock Technologies Inc.,

Foot of Pacific Street, Newark, NJ 07114, USA.

* Stevenson Cooper Inc.

P.O. Box 46345, 1039 W. Venango St.,
Phila, PA 19160.

* Wallnut Hill Enterprises Inc.

Green Lane & Wilson Avenue, P.O. Box 599, Bristol,
PA 19007, USA

* Witco Corporation, (CK Witco Corporation)

Oleochemicals and Derivates Group,
One American Lane, Greenwich, CT 06831-2559

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15
 SECTION X

DISCUSSIONS ON ECONOMIC CAPACITY,

INDICATION OF PROJECT COST, INDICATION OF PROFITABILITY

Economic capacity 1500 tonnes per annumn

Project cost Rs.300 lakhs

Assessment of project cost

1. Land

S.No. Description Cost

Rs.in lakhs

1.1 Cost of land of 3.6 acre at Rs.5.5 lakh per acre 19.8
1.2 Cost of levelling, laying internal roads/fencing and 2
compound wall

Subtotal 21.8

2. Building

S.No. Description Cost

Rs.in lakhs

2.1 Factory building of area 500 sq.m. at Rs.3200/sq.m. 16

2.2 Non-factory building of area 180 sq.m.at Rs.4500/sq.m. 8.1
Subtotal 24.1

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3. Cost of Plant & Machinery

S.No. Description Cost

Rs.in lakhs

3.1 Cost of basic plant and machinery 46

3.2 Instrumentation and control 3.45
3.3 Pipelines and valves 4.6
3.4 Structurals for erection 2.3
Subtotal 56.35
3.5 Octroi, excise duty, sales tax, etc.at 12% 6.76
3.6 Packaging and insurance charges (2%) 1.13
3.7 Transportation charges (2%) 1.13
3.8 Machinery stores and spares (2%) 1.13
3.9 Foundation charges (2%) 1.13
3.10 Installation charges (2%) 1.13
Total cost of plant and Machinery 68.76

4. Technical know-how fees Rs.2.5 lakhs

5. Miscellaneous fixed assets

S.No. Description Cost

Rs.in lakhs

5.1. Electrification 4
5.2. Steam boiler and auxillaries 8
5.3. Water storage tank, borewell etc. 4
5.4. Fuel storage tank 3
5.5. Laboratory equipment 4
5.6. Office machinery & equipment 5
5.7. Material handling equipment, packaging machinery, 5
weigh balance, etc.
5.8. Diesel generator 9
5.9. Effluent treatment 3
Total 45

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6. Preliminary & Pre-operative expenses:

S.No. Description Cost

Rs.in lakhs

6.1. Preliminary expenses 1.5

6.2. Pre-operative expenses:- 0
6.2.1 Establishment 2
6.2.2 Rent rates and taxes 2
6.2.3 Travelling expenses 1.5
6.2.4 Interest and commitment charges on borrowings 9
6.2.5 Insurance during construction period 3
6.2.6 Other preoperative expenses and deposits 0
6.2.7 Interest on deferred payment 0
Total 19

7. Provision for contingency Rs.10.12

8. Working capital margin Rs. 108.20

9. Total project cost Rs. 299.48

Say Rs. 300 lakhs

10. Means of finance

Promoter's contribution Rs 120

Term loan from financing institutions Rs 180
Total project cost Rs 300

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11. Financial statements (Rs. in lakhs)

Cost of production

Variable Cost Rs.in lakhs

Raw material and utilities 2727.96

Spares and maintenance 4.2
Selling expenses 177.25
Total variable cost 2909.41

B Fixed cost

Salaries and wages 24

Interest on term loan and working capital loan 134.78
Depreciation 10.97
Administrative expenses 106.35
Total fixed cost 276.1

C. Total cost of production A + B 3185.51

D. Selling price per kg. (in Rupees) 58

E. Annual sales turnover (Rs.in lakhs) 3545

F. Net profit before tax (Rs.in lakhs)(E-C)) 359.49

G. Breakeven point in % 43%

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 SECTION XI

SWOT ANALYSIS

Strength High level of demand for the product

Weakness Small capacity plants and therefore lack of

competitiveness

Opportunity Firm tie up arrangement with refineries and

setting up of the project as ancilliary units
to refineries

Threat Import

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 SECTION XII

FACTORS INFLUENCING THE POSTION FOR A NEW INDUSTRY AND

RECOMMENDATIONS

Microcrystalline wax finds applications in diversified sector, which are growth oriented.
The demand for the products are likely to go up steadily in the coming years.

Substantial quantity of Microcrystalline wax is presently imported in the country. The

import level is steadily going up over the last few years.

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